Tax Legal Questions

I'm not sure what you are asking, but "disability" is not an income tax filing status. Any disability benefits you received may be taxable to you as income; that depends on a lot of different factors. You should seek the help of a good income tax preparer (preferably a really good CPA or enrolled agent) to help you figure out the correct way to file your income taxes. Best wishes to you.... Read More

Your association's tax preparer should be able to prepare a 1099 without the SSN or EIN for the lawn care person; however, backup withholding may be required in order for the association to avoid penalties. The instructions for IRS Form 1099-MISC address this situation.  For this year, the association needs to report the income and make appropriate backup withholding payments. However, I would stop using that person for lawn care services immediately, if the association hasn't already stopped using him. In the future, no one should be hired to provide services to the association if they won't provide the required taxpayer identification number and other information up front.    ... Read More

If you are an employee, the employer generally withhold income tax, and social security and medicare, based on the W4 you fill out and provide to the employer, Therefore, generally, if there is an error in the amount of withholding, it is due to you incorrectly filling out the W4. You should check with your employer, and possibly update the W4 he has on file for you.... Read More

If you or your wife are on F1 and F2 visa, and both have been in the US not more than 5 calendar years, you do not qualify to file domestic form 1040 1040A or 1040EZ, and must file 1040NR or 1040NREZ and cannot claim marital or dependency exemption for spouse, unless from Canada, Mexico, India or South Korea (special additional rules apply for the 4 countries exemptions)... Read More

It appears to me your fact scenario is confusing, as it appears per your description the IRS is auditing you and continuing to audit you for no reason. You need to consult with a professional who can explore your factual situation and help you resolve the situation you have with the IRS. ... Read More

Prersonal medical expenses are deductible on Schedule A of the Form 1040 individual income tax return, subject to limitation of the amount in excess of 10% of adjusted gross income. You should keep your receipts as proof of the amount and nature of the expenses in case your return is audited.... Read More

Generally, you can take a loss on a bad debt to a partnership only to the extent that you have basis in the partnership, such as contribution of capital or income to the partnership. I do not know offhand if a bad debt for wages would qualify, but would guess it does. However, if you don't have a basis in the partnership, you could not claim the loss. ... Read More

You can claim head of household status even if married if "considered unmarried" ie: spouse was a nonresident during the year legally separate under decree of divorce or separate maintenance spouse was not a member of household for last 6 months of year and household was the principal abode of at least one dependent  ... Read More

Fortunately, as a former Enron employee, I sold my stock when I left the company before its collapse. However, in your unfortunate case, I believe you can claim the stock loss in 2015 because the 1099_B is substantial evidence your loss was incurred in 2015, assuming you did not claim the loss in prior year(s). The general rule for claiming a stock loss is that it must be claimed in the year in which the stock becomes completely worthless.... Read More

You need to clarify what happened with your bankruptcy attorney. We do this work but we would be starting from the beginning and that would be expensive for you. If you have problems, we can do the research and give you the proper answer and/or solution. However, i want you to understand that this would be more costly beciase we have no previous knowledge of your case. Ed Dimon 732-797-1600... Read More

No, it doesn't work that way.  You will report the annual income you receive in rents.  Then you will deduct your property annual deductions: mortgage interest, insurance, utilities, repairs and maintenance, property taxes, etc. The total amount of your mortgage payment includes principle and interest, and maybe property taxes and insurance.  The principle part of your mortgage payment is not deductible for income tax purposes.... Read More

IRS regulations provide that the custodial parent has the right to take the exemption for the child. The custodial parent is the one where the child sleeps the most nights during the tax year.If the child sleeps at each parent's home equally then it's the parent with the higher income. So if you're the custodial parent, go ahead and take the exemption. The IRS will cross reference and send you both a notice, then you give the IRS a copy of your divorce decree which states you have more nights (or you have equal nights and you're the higher income spouse). You win. If you're the noncustodial spouse, your ex needs to sign and give you IRS form 8332 for they years you can take the exemption. If he doesn't give you the form, have your divorce attorney file a contempt of court action against him.... Read More